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 PALO ALTO, Calif., Aug. 10 /PRNewswire/ -- biosys (NASDAQ-NMS: BIOS) today announced its financial results for the second quarter, ended June 30, 1993, and the promotion of Dr. Edwin C. Quattlebaum to the position of president and chief operating officer. Consolidated results include operating revenues and expenses for the months of May and June, 1993 for the AgriSense phermone biopesticide business acquired on April 30, 1993.
 Total revenues for the second quarter increased by 97 percent to $2,887,000, from $1,463,000 for the corresponding period in 1992. Product sales increased by 245 percent in the quarter to $2,071,000 from $599,000 for the same quarter in 1992 aided primarily by the inclusion of AgriSense sales and contract manufacturing activities. Net loss for the quarter increased to $5,384,000, or $.69 per share, compared to $942,000, or $.13 per share for the second quarter of 1992. Included in the current quarter is a special charge of $3,692,000, or $.49 per share resulting from management's election to expense purchased research and development technology from the AgriSense acquisition. The balance of the increase in the loss resulted primarily from increased operating expenses from biosys' nematode business as well as the inclusion of AgriSense operating expenses. However, operating expenses as a percentage of revenues decreased from 111 percent in the second quarter of 1992 to 88 percent for the same period of 1993. As a percent of product sales, cost of goods were reduced from 169 percent in the second quarter of 1992 to 105 percent in the current quarter.
 Total revenues for the six months ending June 30, 1993 were $4,305,000 compared to $1,854,000 for the same period in 1992, an increase of 132 percent. The increase in product sales were 174 percent, primarily from consolidation of AgriSense income and from contract manufacturing activities. Net loss of $6,949,000, or $.91 per share for the six months ended June 30, 1993, increased from $2,001,000, or $.31 per share for the same period in 1992. The loss for 1993 also includes the special charge of $3,692,000, or $.48 per share, relating to the AgriSense acquisition as well as increased expenses from biosys' nematode operations and the incorporation of AgriSense operating expenses for May and June, 1993. For the six months ended June 30, 1993, compared to the same period in 1992, costs of goods sold improved from 151 percent to 122 percent of product sales and operating expenses improved from 143 percent to 107 percent of total revenues.
 "biosys has been concentrating its resources in the past few years on research and development, efficacy testing and building of production technologies for its biopesticide products. We believe that the marketplace, for a wide range of application, has a demanding need for environmentally sound biopesticides. Biosys is well positioned to take advantage of these market conditions and accelerate commercialization of new products," said Dr. Vankat S. Sohoni, CEO of biosys.
 "Spearheading this effort will be Dr. Edwin C. Quattlebaum, who joined biosys last year from Rhone-Poulenc, Inc. and will now be promoted to president and to the newly created position of chief operating officer. Ed's experience in operations as well as in marketing and sales eminently qualifies him to ramp up new product introductions and sales," said Dr. Sohoni. "It is anticipated that shareholder approval will shortly be sought to enable Ed to join the biosys board of directors."
 Dr. Sohoni will continue as chief executive officer with the added title of vice chairman of the board. As CEO, he will be responsible for finance, business development, and corporate alliances. He will place increased emphasis on strategic planning and the investigation of acquisitions. The charter of biosys continues to be a worldwide supplier of a broad range of biopesticides.
 Dr. Milton J. Friedman has communicated his intention to resign as vice president, research. He will serve as a consultant to the company and a member of the scientific advisory committee.
 While restructuring its operations with the acquisition of AgriSense, and moving of nematode manufacturing and quality control activities to Decatur, Illinois, and with the change in emphasis of research to a more development-oriented business, the company will be eliminating five positions.
 biosys is a leader in the development and commercialization of biological pesticide products for the control of a wide range of insect pests. Using advanced science and technology, the company develops and manufactures environmentally safe and effective biological controls for agricultural and consumer markets. biosys, which holds in vitro manufacturing and formulation patents, has diversified its business into the development of baculovirus bioinsecticide and contract manufacturing services for biological pesticides and other industrial products. biosys shares are traded on the NASDAQ/National Market System under the stock symbol BIOS.
 Condensed Consolidated Statements of Operations
 (Amounts in thousands except per share data, unaudited)
 Periods Ended Three Months Six Months
 June 30, 1993 1992 1993 1992
 Product sales $2,071 $599 $2,717 $990
 Contract research and development
 revenues 816 864 1,588 864
 Total revenues 2,887 1,463 4,305 1,854
 Cost and expenses:
 Cost of product sales 2,183 1,010 3,316 1,492
 Operating expenses 2,554 1,629 4,598 2,649
 Purchased technology 3,692 -- 3,692 --
 Total cost and expenses 8,429 2,639 11,606 4,141
 Loss from operations (5,542) (1,176) (7,301) (2,287)
 Interest and other income
 (expense), net 158 234 352 286
 Net loss $(5,384) $(942) $(6,949) $(2,001)
 Net loss per common share $(.69) $(.13) $(.91) $(.31)
 Weighted average common shares
 and equivalents outstanding 7,748 7,369 7,600 6,368
 Condensed Consolidated Balance Sheets
 (Amounts in thousands)
 Periods Ended June 30, 1993 Dec. 31, 1992
 Cash, cash equivalents,
 and short-term investments $20,288 $26,903
 Other current assets 3,859 1,577
 Property and equipment, net 4,116 1,656
 Other assets 592 76
 Total assets $28,855 $30,212
 Liabilities & shareholders' equity:
 Current liabilities $2,820 $799
 Deferred revenue 365 169
 Long-term capitalized lease obligations 20 79
 Shareholders' equity 25,650 $29,165
 Total liabilities & shareholders' equity $28,855 $30,212
 -0- 8/10/93
 /CONTACT: Dr. Vankat S. Sohoni, president & CEO, or Bruce G. Fielding, Jr., Sr. VP & CFO, both of biosys, 415-856-9500/

CO: biosys ST: California IN: MCT SU: ERN

TM -- NY009 -- 1018 08/10/93 08:05 EDT
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Publication:PR Newswire
Date:Aug 10, 1993

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